MerQube, a pioneer in technology for index-linked investing, and Impact Cubed, a provider of ESG data and investment solutions, have joined forces to bring bespoke indices driven by empirical ESG impact data to the passive investment market.

The partnership is a response to the firms’ observed need among investors for customisation and factual accuracy.

Impact Cubed’s ESG data is factual and outcome-based, with the firm pitching it as an antithesis to ratings and scores. Covering every listed company globally, the datasets span climate, EU regulation, SDG alignment and more.

The two firms said that one benefit of combining this data with MerQube’s index calculation capabilities was the enabling of thematic customised indices that deliver on increasing investor requirements for products with a high focus on specific ESG themes such as clean water and biodiversity.

The partnership will also offer rapid implementation of strategies as well as clear and measurable impact that can be reported to both clients and regulators.

Impact Cubed recently developed a global equity index for a continental European corporate pension plan that was looking to replace a benchmark from one of the major providers with something more ambitious in terms of sustainability performance, without upping risk.

“The evolution of ESG indices demands next generation products that are transparent and bespoke,” said Vinit Srivastava, chief executive officer at MerQube. “We are excited to combine our sophisticated indexing capabilities with Impact Cubed’s factual ESG data, delivering indices that not only reflect but propel investors’ sustainability agendas.”

Libby Bernick, CEO of Impact Cubed, added: “This partnership encapsulates our commitment to improving transparency for investors using factual ESG data. Together with MerQube, we’re setting a new benchmark for ESG investment strategies that are as impactful as they are individualised.”

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